investment management concepts portfolio management | segment architecture march 25, 2009 adrienne...

Investment Management ConceptsPortfolio Management | Segment Architecture

March 25, 2009

Adrienne Walker and Kshemendra Paulegov@omb.eop.gov

www.omb.gov

• The centralized management of one or more portfolios, which includes identifying, prioritizing, authorizing, managing, and controlling projects, programs, and other related work, to achieve specific strategic business objectives

- PMI, PMBOK

• Effective, timely, and continuing investment and governance decisions about the organization’s initiatives and other structured work effort, products, and software applications

- Gartner

Portfolio Management

• Enable organizational strategy• Weigh benefits against costs • Optimize the value of the portfolio• Balance risk within tolerable thresholds• Cross-cutting key performance

measurement, direct performance towards shared targets

Value Proposition Portfolio Management

GAO IT Investment Management Maturity Model

Portfolio Management

Project Manager• Facilitate creation of a business case

• Determine project objectives

• Conduct accurate, comprehensive, reliable estimates of costs, benefits and risks

• Execute according to standards within allowable performance targets

Program Manager/Business Leader• Identify business transformation needs

• Determine programmatic objectives

• Manage strategic initiatives

• Monitor and control to performance targets

Roles and ResponsibilitiesPortfolio Management

Portfolio Manager• Actively analyze the ‘state’ of project

performance

• Communicate project alignment with strategic goals

• Facilitate development and management of an optimized portfolio

• Regularly reviews major investments, escalates issues and recommends action to the Governing Body

Governing Body/Investors• Set organizational strategy

• Decide future of investments

• Determine performance targets and allowable risk profile of the portfolio

• Mitigate enterprise risk

Line-of-Sight• Articulates the contribution

of inputs to outputs and outcomes

• Identifies performance improvement opportunities that span traditional organizational boundaries

Portfolio-level Performance Management

Portfolio Management

Case StudyPortfolio Management

• Timely, accessible measurement of cost, benefit, risk and performance data

• Early warning systems• Trusting and using the data• Event driven decisions• Meaningful program/project reviews that create actions

and decisions• Post implementation reviews• Shared agreement on organizational goals and objectives• Transition Planning that balances current and future needs

Implementation ChallengesPortfolio Management

Target Architectural Outcomes

• Enhanced governance and agency commitment

• Aligned strategy with high value, measurable, timely performance commitments

• Structured cross agency collaboration resulting in a modernization roadmap

• Use of cloud-based IT Infrastructure (technology) services

• Integration of platforms into agency transition strategies and investment proposals

• Secure inter-operability reduces complexity and cost, improves performance, and is “baked in”

FEA Context - Architecture Levels

Types of Segments

• Core Missions Segments– Interoperability and information sharing

• Business Segments– Standard processes to support migration to cloud-based

shared services

• Enterprise Segments– Focus on standards, policies, and reference architectures

Shared Modernization Roadmaps

Strategic

Planning

Strategic Planning

Architecture

CPIC

BudgetCPIC

Architecture

CPICArchitecture

Architecture

Execution

Execution

National Information Exchange Model

NIEMCore

The IEPD Lifecycle

Identity, Credential, and Access Mgmt

ICAM Experience

• Idea germinated last winter

• Bottoms-up focus– HSPD-12, eAuth, Federal PKI Bridge, Cyber, FEA

– Federal CIO Council, OMB, GSA, DOD leading

• Two cycles of broad review (1200 comments)

• Calendar (~9 months)

– FSAM Steps 1 & 2 done by early Spring

– Draft modernization roadmap reviewed with agencies in the Summer

– Finalized in the Fall

• Cost between $500K to 1M in contractor support, extensive working group and agency involvement.

Platform Architecture Next Steps

• Plan of Action with Milestones (POAM)

– By January 31st, 2010

• Target and Gap on FASM Steps 1 & 2 (Governance, Scope & Strategy)

– Inform the POAM

• Training on FSAM, NIEM, & Data.gov

• Initiate establishment of an appropriate NIEM domain

• Identify target high value business processes and information exchanges for FY 2012 cycle

• Identify and integrate high value data sets into Data.gov

Notional Calendar

• 2Q FY 2010

– Finalize Plans, enhancement of governance, strategy alignment

– Initial exchange data model, targeted business processes, exchanges

– Develop Approach to coordination across Platforms under FEA

• 3Q FY 2010

– Draft an review modernization roadmap with agencies

– Finalize IT Infrastructure strategy with Cloud Initiative

• 4Q FY 2010

– Finalize modernization roadmap with agencies

– Finalize agency use commitments

– Finalize target performance improvement commitments